Canadian marijuana operator Auxly Cannabis Group sold an outdoor cultivation site in Hortonville, Nova Scotia, for proceeds of 4.1 million Canadian dollars ($3.2 million) – significantly less than what it invested in the facility.
As of 2021, Auxly had spent roughly CA$11.4 million to build and develop the Auxly Annapolis OG outdoor cultivation facility and anticipated spending CA$3.5 million more to finish it, according to regulatory filings.
The sale to a private buyer comes shortly after Auxly sold its indoor cultivation site in Nova Scotia in July for proceeds of CA$6 million. That total was also less than Auxly spent on the facility.
Auxly, previously Cannabis Wheaton Income Corp., bought that indoor facility in a CA$14 million deal to acquire Robinson’s Cannabis in 2018.
The nearby outdoor site was announced in 2019.
Toronto-based Auxly closed both Nova Scotia facilities in February, resulting in the loss of 55 jobs.
At the time, Auxly disclosed that it “never commenced cultivation activities at (the outdoor site), instead utilizing the space for additional storage and processing capacity.”
The CA$10.1 million in proceeds from selling both Nova Scotia sites will be used “to support Auxly’s ongoing operations,” the company said in a Wednesday news release.
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In a statement, Auxly CEO Hugo Alves said the company “committed to identifying opportunities to reduce costs, streamline operations and source additional capital in a non-dilutive way” as it aims for positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).
Auxly shares trade as XLY on the Toronto Stock Exchange.